Setting up an insurance company in Dubai means meeting strict regulations, securing approvals from the Central Bank of the UAE (CBUAE), and complying with the minimum capital requirements before you can secure your trade license.
Dubai’s insurance sector is one of the fastest-growing in the Gulf region. Its regulatory framework is renowned worldwide for its strength and transparency, providing stability. At the same time, the emirate’s booming economy creates endless demand for insurance products — from life and health to property and vehicle.
Our guide will walk you through every step of launching an insurance company in Dubai, including license types, capital requirements, and compliance rules. With the right structure and expert guidance, the process becomes straightforward and rewarding. Trade License Zone has supported thousands of companies with business setup in Dubai – and we’ll save you time, money, and stress throughout the journey.
How to start an insurance company in Dubai
Starting an insurance company in Dubai is a complex process of complying with government regulations and approvals from the CBUAE. It involves several steps, including partnering with Trade License Zone, outlining your business activities and trade license type, showing proof of capital requirements and bank guarantees, approvals from the CBUAE, choosing a legal structure, trade name reservation, renting office space, getting initial approval, applying for a trade license, applying for your visa, and opening a corporate bank account.
Step 1: Partner with Trade License Zone
Your first step should be working with an expert in business setup in Dubai, like Trade License Zone. We help entrepreneurs and businesses navigate the CBUAE approval process smoothly, comply with government rules, and choose the right company structure for insurance activities. And we guide you through the entire process and provide a comprehensive suite of services post-setup to keep your operations up-to-date.
Step 2: Define your business activity and license type
Unlike a standard trade license, insurance activities are tightly regulated in Dubai. You need to specify whether you want to operate as:
- Insurer (life, health, property, liability, etc.)
- Reinsurer
- Insurance broker
- Insurance agent
- Third-party administrator (TPA)
- Insurance consultant
Your chosen business activity determines the type of license you need, your capital requirements, and the approvals required.
Step 3: Meet minimum capital and bank guarantee requirements
Capital thresholds are a non-negotiable part of setting up an insurance company in Dubai. Here’s a look at those:
- AED 100M for insurers
- AED 250M for reinsurers
- AED 3M capital plus AED 3M bank guarantee for brokers
- AED 1M capital plus AED 1M bank guarantee for agents
- AED 5M capital plus AED 1M bank guarantee for TPAs
You’ll need to provide audited proof of funds before your application is processed.
Step 4: Secure approvals from the CBUAE
All insurers, brokers, agents, and intermediaries need direct approval from the Central Bank of the UAE. This step includes:
- Approval of your business plan
- Fit-and-proper tests for shareholders, directors, and key staff
- Appointment approvals for compliance officers and actuaries
Step 5: Set up your legal structure
Choose whether to establish as a local LLC (Limited Liability Company), a branch of a foreign company, or an entity within a financial free zone like DIFC or ADGM.
- A local LLC (mainland company) with 51% UAE national ownership.
- A branch of a foreign company.
- A free zone entity in financial centers such as DIFC or ADGM (with 100% foreign ownership, but limited to operations in the free zone and international markets). For a free zone entity to operate on the Dubai mainland, it would need to apply for an additional mainland license with CBUAE approval.
Step 6: Reserve your trade name and submit initial documentation
You’ll need to secure a trade name (approved by the Dubai Department of Economic Development or your DIFC/ADGM free zone authority, depending on jurisdiction) and submit initial documents such as shareholder passports, draft Memorandum of Association, and your proposed business activities.
Step 7: Secure office space
Almost all types of insurance companies in Dubai need physical premises, especially for insurers and brokers. Free zones like DIFC and ADGM offer flexi-desks or offices, while mainland entities must lease an office that meets regulatory standards. Trade License Zone helps arrange the right office package.
Step 8: Obtain initial approval
Once your paperwork is reviewed, the CBUAE will issue an initial approval certificate. This allows you to proceed with full license application, final compliance checks, and registration with the CBUAE.
Step 9: Finalize your trade license application
You’ll need to send the following paperwork to the regulator:
- Copies of shareholders’ passports and visas (if applicable)
- Detailed business plan with chosen business activities and license type
- Proof of minimum capital and bank guarantees
- Initial approval certificate from the CBUAE
- Trade name reservation certificate
- Office lease agreement
- Memorandum of Association (MoA)
- Certificate of Good Standing of shareholders or the parent company (if applicable)
After payment of the licensing fees, your insurance license will be issued.
Step 10: Apply for visas (if applicable)
Your insurance license allows you to sponsor residency visas for yourself, your family, and your employees. This step requires you to register for your Emirates ID, undergo a mandatory medical fitness test, and obtain a visa stamp.
Step 11: Open a corporate bank account
With your insurance license in hand, you can now open a corporate bank account. This is essential for handling premiums and claims – and for regulatory reporting. Trade License Zone can connect you with UAE banks familiar with regulated entities.
What licenses and approvals are needed to operate in Dubai’s insurance sector
All insurance activities in Dubai are regulated by the CBUAE. The type of license you need depends on your role and business activities in the insurance ecosystem. Here’s a breakdown of those for insurers, insurance brokers, insurance agents, and third-party administrator (TPA) companies:
- Insurers: Provide policies directly to customers. Require AED 100M paid-up capital.
- Insurance brokers: Serve as intermediaries between insurers and customers. Require AED 3M minimum capital plus AED 3M bank guarantee.
- Insurance agents: Represent a single insurer. Require AED 1M minimum capital and sponsor backing.
- TPA companies: Handle medical claims on behalf of insurers. Require AED 5M minimum capital.
Every entity must also secure approvals for directors, compliance officers, and actuaries before launching operations. And these approvals are conditional on complying with the CBUAE requirements, including AML-CTF compliance frameworks.
Types of insurance activities allowed in the UAE
The UAE’s insurance framework covers multiple activities and segments. The primary categories are life insurance, health insurance, property insurance, liability insurance, motor insurance, marine insurance, and Takaful insurance.
- Life insurance: Provides financial support to beneficiaries in the event of death.
- Health insurance: Covers medical costs for policyholders.
- Property insurance: Protects assets such as homes, buildings, and equipment.
- Liability insurance: Covers businesses or individuals against legal claims.
- Motor insurance: Mandatory for all vehicles in Dubai. Covers accidents, theft, and damage.
- Marine insurance: Protects ships, cargo, and transport activities.
- Takaful insurance: Sharia-compliant cooperative insurance model.
Capital and bank guarantee requirements for insurance entities
Capital and bank guarantees required for insurance entities are among the strictest in the UAE. Here’s a breakdown of the minimum capital and bank guarantee for each type of trade license needed:
- Insurer: AED 100M minimum capital
- Reinsurer: AED 250M minimum capital
- Broker: AED 3M minimum capital plus AED 3M bank guarantee
- Agent: AED 1M minimum capital plus AED 1M bank guarantee
- TPA company: AED 5M minimum capital plus AED 1M bank guarantee
These are non-negotiable, and businesses must provide audited financial records to the CBUAE.
Choosing between setting up a local, branch, or free zone entity
Insurance companies in Dubai can choose from three main legal structures when setting up: a local company, a branch of a foreign company, or a free zone entity.
- Local company (LLC): Requires 51% UAE national ownership. Common for insurers and agents.
- Branch of a foreign company: Allows overseas insurers to operate in Dubai without creating a separate legal entity.
- Free zone entity (such as in DIFC or ADGM): Offers 100% foreign ownership and internationally aligned regulations, but activities are typically limited to the financial free zones.
How to become a licensed insurance broker, agent, or consultant in Dubai
The path depends on your chosen role. Each comes with its own licensing conditions, ownership rules, and required minimum capital and bank guarantees.
- Insurance broker: Requires AED 3M capital, AED 3M bank guarantee, professional indemnity cover, and approval for directors and key staff.
- Insurance agent: Requires partnership with a single insurer, AED 1M capital, and AED 1M bank guarantee.
- Insurance consultant: Must have professional qualifications, industry experience, and compliance with CBUAE codes of conduct.
Regulatory compliance and AML-CFT requirements for insurers
Insurance companies in Dubai must adhere to strict Anti-Money Laundering and Counter-Terrorist Financing (AML-CFT) compliance regulations. These include AML-CFT regulations, CBUAE codes of conduct, corporate governance, and reporting requirements.
- AML-CFT regulations: Must implement anti-money laundering and counter-terrorist financing frameworks.
- Code of conduct: Uphold professional standards outlined by the CBUAE.
- Corporate governance: Maintain independent compliance officers and auditors.
- Reporting: Submit regular financial statements and regulatory filings.
Failure to comply can result in fines, license suspension, or permanent closure.
The role of TPA companies, surveyors, actuaries, and other intermediaries
The insurance sector in Dubai stretches beyond insurers and insurance brokers. Key intermediaries include TPA companies, surveyors and loss adjusters, actuaries, and reinsurers:
- TPA companies: Handle claims processing and approvals for health insurers.
- Surveyors and loss adjusters: Assess damages and verify insurance claims.
- Actuaries: Provide risk modelling and financial projections to insurers.
- Reinsurers: Spread risk across international markets, improving sector stability.
These entities are also regulated by the CBUAE and need to comply with licensing and capital requirements.
Why work with Trade License Zone
Starting an insurance company in Dubai requires expert handling of trade licenses, capital requirements, and CBUAE approvals. Trade License Zone has extensive experience in guiding businesses through regulated activities, from securing licenses to ensuring AML-CFT compliance.
With our expertise, you can launch your insurance company in Dubai with confidence — saving time, reducing costs, and avoiding regulatory pitfalls.
Whether you’re establishing a new insurer, broker, or TPA, we make the process seamless from start to finish.
Are you ready to get started? Contact Trade License Zone today.
